1041 & 1099-R form

[Gretel]

Reported as "other income"?

Also Cap.Gains are reported on the same form, which need to go to Sch.D.

I was thinking maybe I can report "Gross distribution" as "Dividend" and on same line then input Cap.Gains. Anything wrong with that?

[Burke]

1099R income goes on "Other Income" line, assuming it has been reported correctly. It would have been payout from IRA, pension, etc. It should NOT have cap gains on it. What box is it in? Do not co-mingle that with dividends and cap gains because they are treated differently. The 1099R income was paid to the estate? Not to a beneficiary?

[Gretel]

Yup, paid to estate. Box 3 is for cap.gains but now I see that this amount is included in box 2a-taxable amount. It looks like I will just report as "other income". Thanks.

[Burke]

If your software has 1041 form, and you input 1099R, it should carry it to the proper place. They may have shown the cap gains for computation under the lump sum distribution rules.

[Gretel]

Burke, that is my problem, I can't find form 1099-R in ProSeries. By the way, the FEIN for Estate shows in format of SS# on 1099-R. Maybe forms 1099-R's are not supposed to have FEIN's?

[Burke]

No, a 1099R can be paid to an estate or trust, in which case the EIN is used. Whoever did the 1099R just input the number in the wrong format. Maybe the software has a worksheet for Line 8 that you could just type it in? I can't believe Pro-series does not have input for 1099R. How do you do it in an individual return?

[Gretel]

1040 is no problem, just the 1041. I couldn't believe either. Went through list 3 times, maybe I am just blind.

[taxxcpa]

Form 1041

A 1099R goes into line 24e. My software has a box to check if the amount is from a 1099.
There is no 1099R input like there is in the same program's Form 1040 input.

[Burke]

Interesting. I just pull up the form for 1099R input and add it to the return. Whether it is a 1041, 1165, 1120S, 1040, or whatever. And my worksheet for Line 8 of the 1041 specifically says Form 1099R payments along with a number of other things. I input the info on the 1099R input form and it automatically carries to Line 8 on the 1041 with an explanation "1099R Income" printed on the return. Line 24e is for federal income tax payments, (i.e, withholding). We were talking about where to put the income.

[Gretel]

Taxxcpa and Burke, which software do you use?

[Burke]

I use ATX.

[taxea]

PS has a dividends worksheet that will open if you click on the 2a box on the 1041. taxea

[Burke]

This is not dividend income. Goes on Line 8.

[AZ-Tax]

IRA distributions (1099-R) I placed on line 8

I to am surprised ProSeries does not have a 1099-R within form 1041. On line 24e I entered the Fed w/h on the 1099-R. It say 1099 which I assume it covering all 1099's (1099-misc, 1099-R etc.)

Question. If death was on Feb 20th, 2008, can top of 1041 be beginning Feb 20th, 08 ending Dec 31st, 08? Or does it need to be 12 months? TTB gives an example on page 21-10 of shortest and longest first year but left any in betweens if that option is available.

[Gretel]

No, it doesn't need to be 12 months. I just can be one month if so desired. What I learned from someone who knows these things (I am just stumbling around) is to make use of this election in regards to having all deductible fees (prepay accounting fees) within this period and file one tax return only and some other choices I would need to look up.